Corporate Governance: The Jack Wright Series: A Community Bank Problem: Legal Obligations of Directors

Abstract

Over the last 25 years or so, local banks rolled up through mergers into regional banks and often to national banks. This was the way that such banks as Bank of America and Wells Fargo were built. In 1993, an entrepreneur in a midsize Virginia city, like many others around the country, realized that this trend created an opportunity for new, independent, locally owned community banks and decided to organize one. This new case is an addition to a series of cases on corporate governance and is used in Darden's Corporate Governance course elective. Excerpt UVA-OM-1513 Aug. 5, 2014 CORPORATE GOVERNANCE: THE JACK WRIGHT SERIES A Community Bank Problem: Legal Obligations of Directors Introduction Over the last 25 years or so, local banks rolled up through mergers into regional banks and often to national banks. This was the way that such banks as Bank of America and Wells Fargo were built. In 1993, an entrepreneur in a midsize Virginia city, like many oters around the country, realized that this trend created an opportunity for new, independent, locally owned community banks and decided to organize one. . . .